Category Archives: Staffing

The First Sign You Suck at Hiring!

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Hiring people to work for you directly is probably the single hardest thing you’ll ever have to do as a manager of people. To be fair, most people are average at hiring, some are flat out kill and probably 20% are awful at hiring.

The first sign you suck at hiring is your new hire turnover is an outlier in your organization, your market, or your industry.

So, what constitutes new hire turnover?

I find most organizations actually don’t measure their hiring managers on new hire turnover but use this to judge effectiveness on their talent acquisition team. That’s a complete joke! That is unless you’re allowing your TA team to make hiring decisions! New hire turn is a direct reflection of hiring decisions. Period.

When should you measure new hire turn?  Organizations are going to vary on this based on your normal turn cycles and level of the position. Most use 90 days as the cap for new hire turnover. That is safe for most organizations, but you might want to dig into your own numbers to find out what’s best for your own organization. I know orgs that use one year to measure new hire turn and orgs that use 30 days.

How do you help yourself if you suck at hiring?

1. Take yourself out of the process altogether.  Most hiring managers won’t do this because their pride won’t allow them. If you consistently have high new hire turn comparable to others, you might consider this, you just have bad internal filters that predispose you to select people who don’t fit your org or management style. Don’t take it personally. I suck at technical stuff. I shop that part of my job off to someone who’s better. You might be an exceptional manager of your business, but you suck at hiring. Shop that out to someone who’s better!

2. Add non-subjective components into your hiring process and follow them 100% of the time. Assessments are scientifically proven to tell you what they’re designed to tell you. If you follow what they’ll tell you, you’ll be much more likely to make consistent hires. If that assessment gives you better hires, then keep following it, or find an assessment that does give you that consistency.

3. Analyze your reasons for each misfire hire. Were there any commonalities in those? What I find is most poor hires stem from a hiring manager who gets stuck on one reason to hire, which has nothing to do with being successful in your environment. Example: “I want high energy people!” But then they work in an environment where they are stuck in a 6X8 foot cube all day. It’s like caging a wild animal! 

Numbers don’t lie. If you consistently bomb your new hire turnover metrics, it’s not the hires, it’s you! In the organizations where I’ve seen the best improvement in reducing new hire turnover, it was in organizations where new hire turnover metric results were solely the responsibility of each hiring manager, and nothing to do with talent acquisition.

It’s the 80/20 rule. 80% of most new hire turn is usually coming from around 20% of your hiring managers. Fix those issues and ‘magically’ your new hire turn improves.

The Rooney Rules Killed NFL Diversity Hiring

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What the heck is the Rooney Rule?

“The Rooney Rule is a National Football League policy that requires league teams to interview minority candidates for head coaching and senior football operation jobs. It is sometimes cited as an example of affirmative action, though there is no quota or preference given to minorities in the hiring of candidates.”

Basically, in 2003 the NFL decided that finally, enough was enough in a league where the majority of its players are black and the majority of its head coaches are white. The Rooney Rule was established to try and fix this issue. When it first started it was more effective than previous hiring cycles and 26% of hires in the NFL for head coaches were of minority hires.

ESPN’s Outside the Lines discovered the problem has gotten worse, not better, over the past five years only where 1 out of 22 hires has been a minority head coach.

So, what happened?

It’s classic corporate problem fixing. The try and cure a symptom of the problem and not the problem. Follow my logic:

  1. We need more minority hires!
  2. The problem is perceived to be we don’t hire minorities, if we did, it would solve our problem. Minority coaches are just as good as white coaches, they just aren’t getting interviews.
  3. Look it works! We started mandating you had to interview minorities and instantly minority hiring went up. Give us a trophy!

Then, it stops working.

The Rooney Rule stopped working because interviewing potential minority head coaches was not the issue. The issue is we have a lack of minority coaches in general. I’m not sure why this is, but I have a theory.

When I was growing up many of my white male friends had a dream. That dream was to play college sports. Probably very similar to most black males of that same age. The other part of that dream was that would come back, teach gym and coach. I think this is where the paths separated in the coaching funnel.

I have three sons, all of whom play sports. When I hear them talk with their friends, I still hear the difference. The white kids want to be teachers and coach as a profession. The black kids don’t talk about this path as often. All of them want to play college athletics, but it would seem from my experience that at some point white kids believe teaching and coaching as a viable career and blacks are less likely to believe this is their career path.

Obviously, this is very anecdotal. I’m one guy with one experience, but I did coach youth sports for 17 years and saw this happen time and time again.

The Rooney Rule is failing not because minorities aren’t getting interviewed. The Rooney Rule is failing because not enough minorities are getting an opportunity to coach, or are not choosing the coaching path as a career.  One other issue that comes into play here is obtaining at least a four-year college degree and the access to affordable education.

For those who don’t know most NFL coaches get their start by coaching in the NCAAs. To coach in the NCAAs you must have a four-year degree at almost every school I’ve ever heard of. In fact, there have been NCAA head coaches fired for lying about having a degree and it was found they actually didn’t when switching jobs and the new institution did a degree verification.

So, why should you care about NFL diversity hiring?

In a nutshell, this is all of our organizations trying to diversify our workforce.  If you don’t try and fix the real problem, getting minorities to believe your profession is a viable career path, you’re never going to fix your issue, you’re just going to poach the few in the field from each other.  That means you need specific minority scholarship programs, minority internship programs, etc. At a level, that is commensurate with the level of hiring you’re trying to achieve!

I hear executives all the time talk about increasing minority hiring, but it’s just talk, not programs and dollars. This is the NFL’s issue as well. The NFL needs to specific program under the Rooney Rules that gets teams to hire more minority coaches in general, not just head coaches. They’ve begun with the NFL Minority Fellowship, which in 2015 had 134 participants, and their is hope this will have an impact in the future. Programs like these are what organizations need if you’re serious about diversity hiring.

Recruiting Blocking and Tackling!

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This week I was at CareerBuilder’s Empower Roadshow talking with a few hundred Talent Acquisition pros and leaders in the Dallas/Ft. Worth area. Great event, great group of pros that were super engaged.

I led a panel on tips and tricks for in-the-trenches TA pros and leaders and one of my panelist was Bryan Rice, TA leader from Stryker. The title of this post came from him, he was big on getting TA pros back to blocking and tackling!

What’s blocking and tackling in talent acquisition?

Here’s what I would call the building blocks of great recruiting (Bryan’s blocking and tackling):

1. Phone skills. Have your recruiters conquered their fear of being on the phone? When they need to reach someone is their first thought, “Oh, I should pick up the phone and just ask the person.” Versus, sending them an email.

2. Ability to sell the position they are recruiting for. Can your recruiters effectively talk to a candidate and get them excited about the position, the supervisor of the position, the direction of the company, all the opportunities you can provide them, etc.? Bryan believes today’s recruiters might struggle with this the most, over anything else, and yet, as TA leaders we do very little to ever develop this skill!

3. Building relationships with hiring managers. Do your recruiters meet face-to-face with their hiring managers when they are working a position for that manager? Not only the first time but every time! You don’t build a strong relationship and find out how to add value if you don’t put in quality time with hiring managers. Today’s recruiters are moving too fast, to understand this value, and how it ultimately saves them a ton of time and effort!

4. Building relationships with candidates, that goes beyond the initial screening interview. Can your recruiters share with the hiring manager the candidate’s ‘story’ for each candidate that is presented to the manager? My goal as a recruiter should be that a manager shouldn’t be able to ask me a question about a candidate that I can’t answer. That’s tough, but that’s my goal!

This all seems so basic, yet most recruiters are weakest in these skills.

Why?

I believe the industry struggles here because TA leaders don’t know how to train these skills, and we don’t have off-the-shelve training programs that really go deep on these skills. So, instead of training recruiters properly, we just give them more technology so they can do a bad job, faster.

The training for four things above is very much a hands-on, one-on-one training. Sitting face-to-face and going over and practicing what these conversations look and sound like, and correcting in the moment, and doing them again and again.

The phone skills are just down and dirty getting recruiters on the phone and seeing who will conquer their fear! My first three weeks as a recruiter in training was calling 100 candidates a day. I couldn’t leave until I made 100 outgoing calls, each day, for three weeks.

At the end of those three weeks, I didn’t know if I could recruit, but I knew I wasn’t afraid to pick up the phone and talk to someone!

Make sure you connect with Bryan, he’s one of the TA leaders in the industry that really gets it!

The True Cost of a Bad Hire

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If there is one constant in HR and Recruiting it is the fact that no one will ever agree on how much a bad hire costs an organization!  Never!  It doesn’t matter how much time you put into coming up with some algorithm, how much research to back up your numbers, it’s still going to be 90% subjective/soft numbers at best.

This is the main reason executives in our organizations think the majority of HR/Talent Pros in the world don’t get business!   We come to them with stuff like this:

“We need to reduce turnover because of Engineer who leaves us, costs the company $7,345,876.23!”

Then you go through a 73 slide PowerPoint deck showing how you came up with the calculations all the way down the parking meter expense during the interview, and when you’re done, no one believes you’re even close to an actual number.

The gang over at National Business Research Institute put together a pretty good infographic proving my point – take a look:

NBRI - The Cost of a Bad Hire Infographic

97%+ of the ‘lost’ cost is from “Training” and “Productivity Loss” and those, my friends, are considered very subjective measures in almost all organizations.  What that says is, ‘Oh, Jimmy isn’t working out – fire him – and because he wasn’t working out we lost ‘X’ percent of productivity over any other possible replacement (which in itself is a whole other leap)’.  And, we lost 100% of training we put into Jimmy because he is now not here.  Which again is subjective, since most training isn’t one-on-one, and resources used to train are almost always not used just on one person, etc.

What that says is, ‘Oh, Jimmy isn’t working out – fire him – and because he wasn’t working out we lost ‘X’ percent of productivity over any other possible replacement (which in itself is a whole other leap)’.  And, we lost 100% of training we put into Jimmy because he is now not here.  Which again is subjective, since most training isn’t one-on-one, and resources used to train are almost always not used just on one person, etc.

So, here’s a better way to figure out the cost of a bad hire:

1. Ask your head of finance or accounting what they think it costs? “Ballpark it for me?”  $10K? Sounds great! We’ll use $10K.

2. Use $10K as your cost of bad hires.

Your reality, HR’s Reality, is it really doesn’t matter what the number is.  Only that the powers that be in your organization all agree on the number. Stop wasting your time trying to come up with a better number, just come up with a number that those signing the check agree is probably legit.

Why Doesn’t Corporate Talent Acquisition Change The Way They Pay Recruiters?

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For the most part, Corporate Recruiters are paid a salary. That salary ranges widely from organization to organization, industry, function and location. I’ve seen corporate recruiters who make $40,000 and ones that make $150,000. The $150K corporate recruiters are overpaid, let me just throw that out there right off the bat!

Agency recruiters are usually paid some salary and a combination of commission and bonus. The average goal for an agency recruiter compensation model is 1/3 salary, and 2/3’s bonus and commission. So, if your base agency salary is $30K, the hope is you’ll get to $60K through commission and bonus. It takes some time to get to $90K-ish total, but it’s fairly common for agency recruiters to make six figures. Again, this depends on what kind of agency, location, commission structure, etc.

On average, you’ll see more six figure recruiters working on the agency side, then you’ll see on the corporate side, by a wide margin.

So, are agency recruiters worth more than corporate recruiters?

Worth is defined by those paying! What I’ll say to this question is agency recruiters are more likely to ‘prove’ their worth than you’ll see on the corporate side. Which begs the question why has corporate Talent Acquisition not adapted their pay structure to something similar to that of a recruitment agency?

I’ve run both corporate TA shops and agency shops. I can tell you, realistically, there is no reason, that makes sense, not to at least test different pay structures on the corporate side! My goal in was always how do I get my corporate recruiters to be 2/3’s salary and 1/3 bonus. I wanted to make sure there was some performance-based compensation as part of their total compensation.

Here are some reasons I ran into each time I changed the pay structure of corporate recruiters”

  • “If you change the pay structure the best recruiters will quit!”
  • “We can’t change the salary structure, it’s the law!”
  • “Paying bonuses to recruiters in a corporate setting isn’t fair to the other people in HR!”
  • “The executives will never agree to performance-based pay in a non-sales role!”
  • “We want our recruiters to be hiring manager focused and paying bonuses would change that!”

All of these excuses are complete B.S.!

I did have Recruiters quit everything I came into an organization, but not because of pay. They quit because I made them actually recruit for the first time in their life! They had to pick up a phone, they had hard measures and weekly and monthly goals, they quit because they weren’t recruiters, they were administrators. But, being paid like they were recruiters.

Corporate TA Leaders don’t change their pay structure because they don’t know what to change it to, and change is scary!

I get it. It was the first time I did it as well, but in the long run, we had higher performing recruiters, better hiring manager satisfaction and we flat out performed better as a department, as compared to what we did previously.  Here are some tips to making this change:

– Make sure your high performing recruiters can actually make more money in the new model.

– Make sure low performers make less in the new model.

– Set black and white measurable goals before changing pay, and work with these goals for a while before aligning them with compensation.

– Be flexible to change. The first time I did this I found major holes and had to make some immediate changes that were fair to the recruiters and the organization.

– Communicate with your team and executives through this process.

– Have written outcomes you want to see from this change and watch those metrics closely.

– Paying per hire is never a bad thing, just make sure the pay matches the effort of the hire. Don’t pay the same bonus for hiring an admin as you do to hire a Java Developer. I tried to equalize this by the time and effort it took to fill each position. If it took 1/10 the time and effort, the bonus was 1/10 the amount of a full effort position. Again, you’ll have to test and adjust this for your organization. Don’t write it down in stone, to start!

– You’ll never really have to have a performance management conversation again! Oh, you want to make more money….

Recruiting, even in a corporate setting, is a sales type role and should be paid as such. There is no reason why you can’t have a more effective pay structure in your corporate TA department.

Want some help in getting this off the ground?  Contact me!

 

 

In Recruiting, Content Is NOT King!

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Something happened over the past five years. Content marketing, which is a brilliant way to connect with a customer base and build sales, became very fashionable in the recruiting space.  So much so, that I constantly read vendors telling in the trenches Talent Acquisition pros and leaders:

“In Recruiting, content is king!”

No. No, it is not! In recruiting, activity is king.  I think the confusion comes into play with people treating employment branding and recruiting as the same thing. They’re not the same thing. One build’s awareness of who you are and what kind of employer you might be, possibly you can stretch employment branding into awareness of your job openings as well.

Content in employment branding is important if you’re doing content recruitment marketing. Again, you don’t have to do this to do employment branding. Many organizations build their brand without content. If you have a great consumer brand, you are less likely to need content to build your employment brand.

I’m not against producing great content to build your brand, believe me! It can be super helpful, especially if you don’t have a larger consumer brand behind you.

The point is you can be awesome in recruiting and never produce a single piece of content. I see so many TA shops missing this right now. The question is why? Why are TA shops believing that the only way to recruit is to build content and build an audience?

Employer Branding is a huge business right now! Organizations are spending millions of dollars per year to build, maintain and grow their employment brand. For huge organizations, or organizations in highly competitive environments, this is very important. For many organizations, this is a complete waste of time and resources!

The noise in the employment branding space is so loud right now, most organizations are not going to be heard. In that case, why are you spending the resources? You’re doing this because it’s easier than picking up a phone and calling a candidate! That’s recruiting.

Recruiting are the activities you do to hire people for the jobs you have open. Included in those activities are not only candidate attraction but candidate interaction. Candidate interaction, the function of a recruiter interacting with a candidate, might be the most forgotten skill in all of Talent Acquisition.

The skill of interacting with a live person is lost on most talent acquisition shops. Sure you can connect with candidates via email, messaging, text, twitter, Snapchat, etc. Eventually, though, someone has to speak to a live person. Someone has to close this person on coming to work for you. We, the talent acquisition industry, continue to spend less and less time on this side of our business, and it’s showing.

Great recruiting organizations are activity focused and activity driven. Sales funnel. Candidates come in the top, and hires come out the bottom. It’s not difficult. It’s not art. It’s a process. It’s metrics. Teach your recruiters to be able to engage live people on the front side, and you will see a great return on that investment in more hires. No content needed.

 

 

Candidates Actually Want Human Interaction!

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TA Leaders and Executives, this is the dirty little secret that your Recruiters and the Talent Acquisition Technology industry does not want you to know!  Candidates actually prefer to have human interaction when searching and applying for a job. From a study done by ASA:

“Three of the top five ways job seekers land a job are “high touch,” according to the survey findings. Word of mouth is the most popular means (43%)—followed by job board websites and employer websites (both at 30%). Contacts or acquaintances with prospective employers (30%) and staffing and recruiting companies (25%) also rank high as resources that led to job offers.

Three in four (77%) actually prefer human interaction when searching for a job, according to the ASA Workforce Monitor.“

Recruiters and TA Tech are in bed together to pull the wool over your eyes!  TA Tech wants to sell you automation! Recruiters don’t want to pick up the phone! Put those two groups together and it’s one big circle jerk about to use only technology solutions to recruit and never pick up another phone as long they live!

Seriously! 3 out 4 candidates prefer to have a human contact them and tell them about the job you have open. I bet if you sent out an informal survey to your recruiting team, right now – today, the response from your recruiters would be that they believe only 25% or less actually would prefer a call!

That’s a huge disconnect, and should be very telling about the talent on your team!

So, how do you get your recruiters back on the phone?

1. Measure the amount of outgoing calls by person and post it publicly for all to see. You don’t even have to say one thing about it, the calls will automatically increase! True recruiters hate being on the bottom of any scoreboard!

2. Have fun with it! Run contest and provide incentives for more outgoing calls by your recruiters. For recruiters who grew up in a world where they thought they could just email and message their way to success, the phone is scary! Some will need a kind push!

3. Group call parties. Take one hour of the day and plan for every single recruiter to be on the phones at the same time. Make sure they prepare by sourcing ahead of time and have a number of candidates to reach out to. They should have at least 25-40 to call. Most calls will go to voicemail, if they’re lucky they’ll actually talk to a few people. It will be the fastest hour of their day or week! When everyone is doing this at the same time, you get great energy from the group and it seems less scary!

An average recruiter with 25 openings on their desk should be talking live to around 75-100 people each week on the phone. What I find when I first go into a new shop and measure this, the real number is more like 15-25!  It’s shockingly low! How are you going to fill 25 openings by talking to 25 people per week!? You won’t. That’s why your TA shop is failing.

I love TA Tech! I love TA Tech more than almost anyone I know. What I also know is that all great recruiters spend more time on the phone on average than weaker recruiters. It’s so simple, yet most of us fail as TA leaders not recognizing this.

 

5 Instagram Filters That Will Make HR Better at Recruiting!

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You know it’s true—you’re a great HR Pro, but you don’t really like to recruit. That’s okay, because you’re good at a million other things your company values.

But here’s the thing: A recent Deloitte report outlined the need for HR Pros to grow their skills beyond what our functional area is traditionally known for. CEOs and division heads are expecting different things from HR, and one of those areas of need is… you guessed it… Talent Acquisition/Recruiting.

(Cue the lighting, adjust the crop and apply the filter—BAM. Insta-recruiter. There’s nothing that an Instagram filter can’t transform!)

The Fistful of Talent crew is back with the following webinar, “Instagramming HR: 5 Filters HR Pros Can Use To Transform Into Better Recruiters“ (sponsored by the good folks at Jobvite). Join Dawn Burke and Kris Dunn on June 29th at 2pm EST, and they’ll hit you with the following goodies:

–A review of why leaders report the need for HR re-skilling and why recruiting rises to the top of the list for HR pros and generalists at all levels.

–Data on how talent acquisition is a key component to achieving results in the modern workforce—including areas that HR Pros love to talk about (employee engagement, retention, etc).

–A breakdown of how recruiting has become more challenging in the last 5-10 years, and why the methods HR Pros have traditionally used to recruit aren’t as effective today.

–5 key strategies that HR Pros can embrace to modernize their approach to recruiting, get better results for their organizations and be viewed as high potential by the leaders they serve. We’ll go over those strategies and tell you how to get started with each of them.

The HR Pros at FOT know you work hard and are good at what you do. You don’t have to love recruiting as an HR Pro; you just have to be good enough at it to ensure it doesn’t hurt your career. With a little editing and the perfect lighting (Nashville, amIright?) you can bring out your inner recruiter in no time.

Click here to join us for “Instagramming HR: 5 Filters HR Pros Can Use To Transform Into Better Recruiters“ on June 29th at 2pm EST, and we’ll show how to ramp up your recruiting game without giving up the things you love to do as an HR Pro!!

REGISTER TODAY!

The One Way to be Successful at Recruiting

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Eight years or so ago I started seriously writing for the first time in my life. The only other times I ever wrote in my life were school papers, a journal that my high school English teacher, Ms. Kemp, made me write in each day and love letters to my wife before we were married and email was not yet widely used and phone calls cost too much!

My good friend Kris Dunn got me to write for Fistful of Talent. He and Jessica Lee, who was the editor at the time, gave me the Friday slot at FOT. It was my job to write something snarky and fun, a piece people would read on a Friday, chuckle and know the week is almost over. That gig turned into this gig, which turned into me writing every single day, now going on five-plus years.

In all of this writing, I discovered what a lot of people discover in becoming successful. If you want to be successful at anything, you need to do it! You need to do it a lot! You need to do it every day.

I still write stuff that is crap. I make errors all the time. But, my writing has improved. Once in a while, I actually write something I think is pretty good!

That’s the secret to becoming really good at recruiting. You need to do it all the time!  I see HR Pros who try and recruit every once in a while. They suck at it and they’ll never be good at it because they don’t do it all the time. You can’t pick up a pencil and be instantly good at writing. You can’t pick up a phone and be instantly good at recruiting.

To be good at recruiting you must recruit every day.  You must always be on.  Everyone you meet. Everyone you talk to. Everyone becomes a potential part of your recruiting pipeline. Maybe as a candidate, or a lead, or a referral, etc. You don’t recruit, then turn it off and not recruit. You recruit always.

I’m, now, constantly writing. I rarely go a day when I don’t email myself ideas about something I want to write about. I think like a writer. How can I take this situation and write about it? My friends, family, and coworkers tease me about it (‘Don’t write about this!’ ‘You’re going to write about this aren’t you?’).  I’m always on.

If you truly want to be successful in anything in life you need to do that thing, always. I see recruiters constantly miss opportunities to recruit. To ask the question that would lead them to their next great hire. To pick up the phone and make one more call before they leave for the day. To take a chance and reach out to someone who they don’t think will be interested, but just maybe they will be interested.

Being good at anything is hard. It’s really hard if you want to be good by not doing it.